Klin Industries Vs ACIT (ITAT Rajkot)
The Income Tax Appellate Tribunal (ITAT), Rajkot Bench, disposed of three appeals filed by the assessee relating to Assessment Years 2014-15 and 2016-17 against penalty orders passed under Section 271(1)(c) of the Income Tax Act, 1961. The Tribunal noted that one of the appeals for A.Y. 2014-15 was merely a duplication because an earlier appeal for the same assessment year had already been decided by the Tribunal through an order dated 15.01.2026, wherein the penalty was deleted on the ground that the notice issued under Section 271(1)(c) was defective. Since the assessee had already obtained relief, the duplicate appeal was treated as withdrawn and dismissed accordingly.
The remaining two appeals related to A.Y. 2016-17 and concerned penalties of Rs. 6,81,564 imposed under Section 271(1)(c). During assessment proceedings, the Assessing Officer had made quantum additions and the assessee paid the entire tax demand arising from those additions. However, the Assessing Officer subsequently imposed penalties under Section 271(1)(c). The assessee contended that the penalty notice was defective, that the specific charge under Section 271(1)(c) was not clearly identified, and that no penalty should be levied since the tax demand had already been paid. The assessee also relied on the Tribunal’s earlier decision for A.Y. 2014-15, where penalty had been deleted on identical facts.
